Vince Holdings Corp. announces positive Q1 2015 results
Vince last week reported its first quarter 2015 results that were seemingly positive compared to last year’s numbers. The contemporary fashion brand saw increases across the board in sales, profits, and net income.
Net sales increased 12% this quarter to $59.8 million, up from $53.5 million in the prior year’s first quarter. Wholesale increased 2.6% to $38.3 million, direct-to-consumer sales increased 33.6% to $21.6 million, and comparable store sales including e-commerce increased 9.7%.
Gross profit increased 16.4% to $30.7 million compared to $26.4 million from last year. Net income increased 77.3% to $2.5 million, also up from $1.4 million from last year, and the company paid down $4.9 million of its debt.
Jill Granoff, Chief Executive Officer of Vince, commented, "Our first quarter performance was generally in line with our expectations, with double-digit sales and profit growth in a challenging environment. Our results were driven by a 34% increase in our direct-to-consumer segment sales, a modest increase in our wholesale segment sales and gross margin expansion of 200 basis points. We believe that Vince continues to resonate with consumers as a premium contemporary fashion brand offering everyday luxury essentials and modern effortless style."
Despite the successful first quarter, the company lowered its sales expectations for the year. For the year, the company expects to gain $340 million to $350 million in total net sales, including revenues from 10 to 11 retail stores and comparable sales including e-commerce.
During the first quarter, Vince opened four new stores ending the quarter with 41 company-operated retail locations.
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